(October 20 – 09:20) – The next insurer to go the demutualization route, Sun Life Assurance Co. of Canada, is reporting that over one million policyholders should share between $5.6 billion to $8.4 billion when the firm goes public.
The firm’s financial advisors, RBC Dominion Securities Inc. and Morgan Stanley, are calling for an IPO price of $14 to $21 per share. The minimum share allocation will be 75 shares, with the average number coming in at 378.
Sun Life is mailing its information circular today. It will also be posted on its Web site. Policyholders will vote on the plan December 15. The Michigan Insurance Commissioner, Sun Life’s primary U.S. regulator, will host a hearing on the proposal November 22. Assuming the U.S. reguIator and at least two-thirds of policyholders approve the move it will then ask Paul Martin, Minister of Finance, for final approval.
The actual IPO is expected to close in the spring of 2000, with shares listing on the Toronto, Montreal, New York, London and Philippine stock exchanges. The listed firm would be a holding company called, Sun Life Financial Services of Canada Inc.
-IE Staff
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